Brokers Unveil New Discount Models

Discount push resumes as brokers aim for bargain-hunting consumers.

(Boonton, NJ, November 17, 2016) —
As consumers continue to exert pressure on real estate
commissions, non-traditional companies are pitching
business models seeking to capitalize on the notion
that agents are simply paid too much for their
services.

In one example, an Atlanta discount brokerage is
expanding aggressively. In another instance, a startup
company from New Jersey says it has found a way to
facilitate discounts without disrupting an entire
industry.

The New Jersey website Less Percent Real Estate touts
itself as something of a dating service for bargain
hunting sellers and willing agents. Here’s how it
works: A seller visits LessPercent.com and anonymously
posts details about the listing.

Agents then bid for the seller’s business, primarily
based on price. Less Percent Chief Executive Michael
Huegel says the typical commission through the site is
in "the low 4s."

Agents who win listings through the site pay a flat fee
based on the listing price. The fee starts at $299 for
homes listed at up to $299,000, and the fee goes up in
$100 increments from there.

After starting in New Jersey, Less Percent has expanded
to California and Florida.

Huegel notes that he has gotten little resistance from
the industry, in part because discounts have become so
common.